China invests in Dutch additives firm Siveele

07-Jun-2012 - Last updated on 08-Jun-2012 at 13:02 GMT

Siveele works with a range oif additives, including nisin

Dutch food additives firm Siveele will benefit from considerable investment in the business from Chinese manufacturer Pangbo Biological Engineering, with preservatives being one focus for future development.

That’s according to Giulio Cicione, director of sales and marketing for Siveele, who said the move gave the company access to commercial production capacity to realise many of its research and development ideas.

“We own the technology that allows us to produce a natural preservative which has surfactant properties,” he told FoodNavigator. “We want to see commericalisation of this. We have already prepared samples and have sent them out to a few companies in Europe.”

The ingredient was used in personal care products such as shampoo and skin lotions, but could also be used as a food preservative, he said. Pangbo’s investment in Siveele, which was announced yesterday, would enable it to drive plans in this area forward.

However, Cicione said there would be more potential to develop the ingredient outside of Europe first, because regulatory approval for European food markets would take time.

Boost potential in enzymes

Siveele also produces other natural preservatives, such as nisin (E234) and natamycin (E235), colours, extracts and enzymes and the deal with Pangbo would help it develop in these areas as well, said Cicione. In particular, Pangbo, whose activities include enzyme production as well as sales, research and development, technical and application support, would boost Siveele’s potential in enzymes.

Siveele produces preservatives using a fermentation process involving bacteria and yeast extracts, he said. “The relationship will bring benefits in these areas and allow us to bring a more integrated offer. We have been trying to look for a manufacturing partner for some time and we have been looking to that part of the world [China] for a joint venture.”

Pangbo’s investment could also allow Siveele to establish another research and development laboratory and access additional knowledge transfer and expertise, he said. “We will be standing on the shoulders of a giant and will benefit from more functional flexibility and more business possibilities,” said Cicione. Pangbo has invested in Siveele shares and talks regarding further investment were ongoing, he said.

In turn Pangbo would rely on Siveele’s expertise in marketing and research and development to test the ground for its products in Europe.